New rating valuations for Upper Hutt City
Upper Hutt City Council
The Upper Hutt City Rating Revaluation for 2019 is now confirmed and property owners will soon receive a 2019 Notice of Rating Valuation with an updated rating value for their property.
The new rating valuations have been prepared for 17,304 properties on behalf of the Upper Hutt City Council by Quotable Value (QV).
Rating valuations are carried out on all properties in New Zealand, usually once every three years to specifically help local councils set rates for the following three year period. Rating values are just one of a number of factors councils use to allocate rates. Council rates will not be updated based on the new 2019 rating valuations until 1 July 2020.
The updated rating valuations should reflect the likely selling price of a property at the effective revaluation date, which was 1 August 2019, but do not include chattels.
The rating revaluation figures compiled by QV show the total rateable value of the 17,304 properties within Upper Hutt City Council is now $11,700,710,000 with the land value of those properties now valued at $6,019,684,000.
QV Senior Consultant, Hoa Quan says the Upper Hutt property market has experienced significant growth since the last revaluation in August 2016, particularly the residential sector.
“Residential housing is showing an average capital value increase of 37.8% with the average house value now $615,000, while the corresponding average land value increased by 60.2% to an average of $337,000.”
“Residential flats and townhouses have also increased in value by 48.3% with an average value of $383,000 and a corresponding land values increasing 58.8% from 2016 levels”
“Commercial property is showing an overall increase of 18.0%, with corresponding land values increasing 26.5% on 2016 levels. Industrial property capital values increased 52.0% with land values increasing by 37.0% on average to $399,000.”
Hoa Quan Commented, “There has been good demand for industrial properties, driven by increasing rents and falling yields. The Alexander Industrial Park has shown a strong uptake in vacant industrial sites compared to previous revaluations.”
“Lifestyle properties have also seen strong value growth since August 2016, with average improved lifestyle property capital value increasing by 29.4% to an average capital value of $965,000, while the corresponding average land value for a lifestyle property increased by 43.3% to $462,000.”
It is helpful to remember the effective rating revaluation date of 1 August 2019 has passed and any changes in the market since then won’t be included in the new rating valuations.
This means in many cases a sale price achieved in the market today may be different to the new rating valuation set as at 1 August 2019 and that rating valuations are not designed to be used as market valuations for raising finance with banks or as insurance valuations.
The updated rating valuations are independently audited by the Office of the Valuer General, and need to meet rigorous quality standards before the new rating valuations are certified.
New rating values will be posted to property owners after 7 October 2019. If owners do not agree with the rating value they have the right to object.
The objection close-off date is 20 November 2019. To find out more about rating values or to lodge an objection online go to www.ratingvalues.co.nz.
It is important that property owners remember that a change in the rateable capital value of a property does not mean rates will change by a similar percentage.